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It's All Coming To An End, Bill Gross Warns
Say what you want about Bill Gross, but the legendary bond investor is absolutely spot on in the following paragraph from his latest, December, investment outlook:
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt? How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending.
Here is the full letter (link):
How Could They?
Punch and Judy fought for a pie.
Punch gave Judy a sock in the eye.
Said Punch to Judy, “Would you like any more?”
Said Judy to Punch, “No my eye is too sore.”
– Mother Goose nursery rhyme
Ah, nursery rhymes! Intended for kids no less! The above little ditty could serve as a modern day NFL domestic playbook, I suppose, while a century ago it was but one of many “lesson plans” on what not to do when you grow up. There was Jack and Jill, and Little Miss Muffet – all of whom had to be careful – the Muffet Ms. especially so if she ever sat on a tuffet; spiders were lurking! Then there was the Old Woman Who Lived in a Shoe, the moral being that if you lived in one, lots of kids would drag you down for the rest of your life. Honestly – conception must have been pretty awkward for the old gal, maneuvering between laces and all. And instead of scented candles, well, you get the picture. Even Buster Brown’s dog, Tige, wouldn’t have lived in there.
The Punch and Judy rhyme pretty much exposes the early 20th century for what it was: male dominated and domestic violence permitted. Actually, back then, the way comic strips allowed women to get revenge was a metaphorical frying pan in the kitchen. Watch out, Dagwood – here comes Blondie! Today, all of that is frowned upon and so much the better. Outside of comic strips and nursery rhymes, the AMC series “Mad Men” takes us back to the bad old days when everyone smoked in the office and right next to you on airplanes, no less. “How could they?!!” is the almost immediate response, because we have adapted and adjusted to a different set of social, moral and ethical standards. Race, gender, sexual orientation, you name it … things are moving forward. You could shriek a “How could they?” for all of the above while understanding perhaps why they did. Maybe they didn’t know any better, maybe the time wasn’t right, maybe they just needed a Martin Luther King, a Betty Friedan, or a Harvey Milk to lead the way. In each case the “How could they?” can only be answered by “they did – but now they don’t as much.”
What I find equally interesting is to project forward and try to guess what things we are doing now as a society that our grandchildren will ask, “How could they?” That indeed is a tough one, because like cigarette smoking on “Mad Men” in the ’60s, it’s difficult to conceive of an alternative environment. Perhaps it will be food and cuisine oriented. Corn in everything we eat and drink; genetic modification – “How could they?” Perhaps it will be robot driven cars, prompting our grandchildren to ask, “How could they? No wonder there were so many fatalities.” Maybe going to college will top the charts of future unthinkables. “Spending $200,000 for four years of partying – how could they?” We shall see, or better yet, our kids will. They will mold their own world as their environment, and developing ethical standards will mold them in turn; a wheel within a wheel. Punch and Judy would be amazed.
Speaking of the future and life’s lessons, there is an ongoing process of discovery taking place amongst the world’s central bankers which they hope will rejuvenate their respective economies without creating the inflationary horror of the 1970s. If Federal Reserve Chair Janet Yellen were the fictional Little Miss Muffet, she would be hoping to eat the “curds and whey” of 2% to 3% real economic growth while avoiding spiderous increases in future prices. If European Central Bank President Mario Draghi were the old fashioned “Punch,” he might figuratively be attacking German Chancellor Angela Merkel and her tight monetary and fiscal heritage. “Take that Judy/Angela!” I don’t know who to compare Bank of Japan’s Governor Haruhiko Kuroda to – perhaps little Jack Horner hoping to stick his thumb into a Christmas pie, pulling out a plumb and exclaiming, “What a good boy am I!” Ah, policymakers. Perhaps the last five years have been one giant nursery rhyme.
But each of these central bankers is trying to achieve the same basic objective: Solve a debt crisis by creating more debt. Can it be done? A few years ago, I wrote that this uncommonsensical feat could be accomplished, but with a number of caveats: 1) Initial conditions must not be onerous; 2) Both monetary and fiscal policies must be coordinated and lead to acceptable structural growth rates; and 3) Private investors must continue to participate in the capital market charade that such policies produced.
Let me explain each of these three caveats in turn.
- By initial conditions, I am referring to existing structural headwinds that would thwart the successful rejuvenation of old normal, nominal growth rates. Certainly a country’s current debt/GDP ratio factors enormously into the oddsmaking for success. It is difficult, for instance, to imagine Japan getting out of its quagmire of debt by simply creating more of it and buying 100% or more of the new and current supply. Similarly, Greece (which has already suffered several restructurings) as well as neighboring Euroland peripherals begin the healing process well behind the debt/GDP eight ball. But there are other significant initial conditions – structural headwinds – that my version of the “New Normal” envisioned as early as 2009: aging demographics, technology/the race (rage) against the machine, and the ongoing reversal of globalization, are all growth-stunting factors to consider. Economist and former Treasury Secretary Larry Summers has labeled this “Secular Stagnation” and rightly so, but it is just another way to describe the New Normal and its deleterious effect on future growth.
Monetary and fiscal policies must work side by side; they must be stimulative as opposed to being counterproductive. It makes little sense, for instance, for Euroland to be running a tight fiscal policy resembling the balanced budget mandate of Germany, while at the same time initiating quantitative easing and negative interest rate monetary policies. The same holds true for the Bank of Japan’s massive monetary stimulus on the one hand, and Japan’s raising of its consumption tax on the other. One could even apply that complaint to the U.S. with its fiscally restrictive rebalancing of its budget deficit from 10% to 3% over the past five years. If not for fracking, Uncle Sam might be labeled the Old Man in the Shoe for not knowing what to do. In fact, in the U.S., as elsewhere, there has been little focus on public investment and infrastructure spending. It’s been all monetary policy, all of the time, with most of the positives flowing over to markets as opposed to the real economy. The debt currently being created is not promoting real growth and solving a debt crisis – it is being used by corporations to repurchase shares and accentuate the growing inequality between the very rich and the middle class. - Keeping private investors playing the “game” in our financial markets even though they smack of a pyramid scheme might seem like a no-brainer. “Where else can they go” has been and continues to be the commonsensical refrain. Not sure, but perhaps Google Maps can show the way. But on the fringe and at the margin, there are alternatives to negative interest rates or artificially low cap rates, or escalating P/E ratios based on historically high profit margins. And even if investors must buy something, they don’t necessarily have to buy it in their own or any specific country. If 3-year German government bonds yield -.05%, then how about a 3-year Brazilian government bond at 12.5%? At the moment the negative yielding German bond gets the market’s vote, but you must see the point. Creating more debt with artificially low yields leads to currency wars and exchange rate volatilities that distort global capitalism. Solving a debt crisis by creating more debt cannot cure the disease if higher volatility distorts the historical flow of markets and associated commerce.
- And of course economic theory might suggest that artificially low interest rates gradually but inevitably lead not to more consumption and real growth, but to more savings in order to meet future liabilities such as education, health care, and eventual retirement. If a household needs $250,000 for any or all of these future commitments, it will be twice as hard to meet them with 5-year Treasurys at 1.5% instead of 3%.
With each of my three primary caveats coming up short in an answer to my earlier question: “Can a debt crisis be cured with more debt?” it is difficult to envision a return to normalcy within my lifetime (shorter than it is for most of you). I suspect future generations will be asking current policymakers the same thing that many of us now ask about public smoking, or discrimination against gays, or any other wrong turn in the process of being righted.
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt? How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending.
Markets are reaching the point of low return and diminishing liquidity. Investors may want to begin to take some chips off the table: raise asset quality, reduce duration, and prepare for at least a halt of asset appreciation engineered upon a false central bank premise of artificial yields, QE and the trickling down of faux wealth to the working class. If the nursery rhyme theme is apropos to the future, as well as the past, investors should remember that while “Jack and Jill went up the hill,” that “Jack fell down, broke his crown, and Jill came tumbling after.”
Someday soon, perhaps.
-William H. Gross
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Fuck you Bill
Captain Obvious
Gross: The guv should have borrowed more and built more stuff.
Like freeze dried emergency food manufacturing plants?
Or coffin factories?
Central planners at the Fed and the guv are the problem.
Bill's having a crisis of conscience. And he's got enough money he's allowed to do that.
Just remember that only poor people are crazy. Rich people are eccentric.
Bill is smart. He knows the danger is his head could adorn a lamp post if the SHTF scenario develops...........there's no where to run and he knows it
...and how could I, Bill Gross, have been the chief enabler, the chief bagman for all of this government debt creation?
Greed.
Watch out for nail guns and stay off the tops of buildings, Bill.
just sayin'...
The Borg are scrambling to keep the Borg Queen alive.
the cowards in congress created the creature when it relinquished its duty to look after
we the peoples money 100 years ago, its been a jews game ever since. to capture
all assets through boom and bust, and enslave a free people to debt. mission accomplished.
<- Would trade places with Bill Gross
<- Bill is Gross
Money is evil.
.
Like really, wtf are we doing on this planet? A bunch of lost souls floating on a rock going to 'work' so we can pay off a car? A house?!? A fuckin cell phone bill?!?!?
Time to get baked.
+1
Mr Gross obviously never went to the Pete Stark School of Debt is Wealth
https://www.youtube.com/watch?v=UjbPZAMked0
is bill hinting at suicide?
The guy was wrong at PIMCO and is wrong now.
We're in a Liquidity Trap, rates will be much lower as will stock prices a la Japan.
Billy, the world only ends once and when it does, nobody's gonna give a shit about their bond account.
In between then and now, things will keep getting worse and worse, financially, meaning lower yields and stock prices.
Now, if the PM's would just begin acting "right"
Yeah, I saw you 3 putt #3.
PS Chump.... your Fight Club "Our Great War's a spiritual war... our Great Depression is our lives." comment is not to be taken lightly.
Synchronicity II
They didn't stop there. They set up massive vote buying dependency generating programs of ever increasing size and audacity. Prior to Obamacare, the last one, the one that struck the match that set fire to the Constitution, was Congress' weaponisation of Fannie and Freddie to shift trillions in shoddy debt with implicit government backing. The chief criminals in Congress, Dodd and Frank, have their names on a certain bill, instead of being imprisoned.
Miss B. Haven
Pulled out her Raven
To eat all that there was,
But it was still craven
Litt'l Miss Maven
Devoured her whole, just because.
+1000
Hey Bill, it's all part of their plan to control everything. This is just one of the phases. Get with it!
They're all involved in an elaborate scheme based on contrat law & Criminal deceit to Fraud The American People by CONSENT (Black Law's Dictionary) & being an accessory to the deceit & Criminal Fraud by contracting with the Criminal State.
We are "Governed" into a Political, Educational, Religious & Economic UNITED STATES, CORP based on contract law which is based on Criminal Fraud, deceit & illusion.
The Private Corp UNITED STATES, CORP uses the cover of being a functional Government when in reality they are not. Much like the Criminal Federal Reserve uses The "Federal" in their name & use it as cover to give the illusion that they are a branch of the US Government when they are not.
Through bankruptcies, Criminal Contract Fraud & deceit the Charlatans have incrementally incorporated the US as well as your souls (birth cert) which are securitized via the Criminal Federal Reserve through to the IMF.
They're functioning off corporate version of the THE CONSTITUTION. It's the reason why The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate continues to lie, cheat, deceit, rape & pillage with impunity.
The only power the have over you is with CONSENT (Black Law's Dictionary). Pay no Taxes. Peaceful Non-Participation, Non-Compliance & being an accessory into their Criminal system/s based on Criminal Fraud, Debt Bondage & Enslavement.
Look. It's there parchment! There's 2 Constitutions, one from 1776, one from the Act of 1871. One says for the united states. The other says OF THE UNITED STATES OF AMERICA, INC.
They removed the organic language from the 13th Amendment of 1776 which Gaurenteed our individual rights and replaced the whole amendment in the forgery look alike.
Please tell me your aware of this? Search Trading with the Enemy Act also. That proves we lost the Constitution a long time ago, we practice commerce, that's it.
bravo
+18,000,000,000,000!!!
Onerous debt.
odious as well
Malodorous as well
Malicious as well
@ Usurious,
Thank you,
I'm flattered. I do not write or put together thoughts often. However, when I do, I prefer to be direct, on spot & to the point.
MIGS.
How could they have created all this debt? Because they had world reserve currency status. Because they were no longer constrained by gold. Because previous generations of Democrats had jammed down the Progressive agenda one massive program at a time. Because the system ultimately is a Ponzi scheme doomed to collapse so why not go for broke before it ultimately breaks. Because bankers bought most of the Congress and the Presidency and run the whole scam for their benefit. I could probably think of some other reasons, but those are the more cynical and realist ones off the top of my head.
You know there is something new going on. Names are changing. From JOHN QUINCY ADAMS to JOHN Q. ADAMS. It seems the fed reserve is being restructured somehow and they are using new names. I have seen people talking about it but have not received anything that way yet. This is since July 2013.
Would you have any more info about this? As I keep digging down that rabbit hole.
Yes, each new permutation of THE NAME is a new trust, belonging to? IMF? UN? World Bank? This woman seems to be on top of it: http://www.annavonreitz.com/index.html
Looked into this long ago. All evidence unfortunately points to this being correct.
However, removing yourself from the system is the problem. Especially when the system is dying.
However, removing yourself from the system is the problem solution. Especially when the system is dying.
Lots of talk about this since ZH was born. No big answers though. Just practical ways to reduce participation.
Problem here is that the system is going to claw at everything on the way down. Own a car - pay up. Own a house - pay up. etc. Most people are just trapped.
Baby Steps.......as difficult as it can be, try to 'wake up" as many people as you can.........
The more people who understand their ''bank-note scheme'' system the better.......
Who is John Galt?
Take a look at the labor force participation rate. He's about 42% of the labor force, and climbing.
But the solution then is the same as it is now. "Pay up," should just be met with the same simple but firm, "no." Easier said than done of course.
The problem is there is no Galts Gulch in real life. You can remove yourself, but only by degrees. No man is an island.
If you give up control of of your life to government and its law makers, you deserve every bit of wrong-doing government is capable of.
You deserve to suffer because you are stupid.
There are at least 3 constitutions. When Bill Gross was a college age ubermench, a demented subset of the cream of the of antilifers of his generation were enouraged to come up with this POS. Although we don't know what their rules are, this glove fits the trajectory they have been running us down.
Strange how he begins to question his 'industry' after he's skimmed his millions off the top of it. Methinks him just another pretend penitent.
He who bolts first bolts best. Sounds like he is selling the top, not exactly a bad idea for those still deeply invested.
What is the "it" he refers to? Life? This charade?
No Bill, we are destined to repeat this is another form in a future generation. Have the balls to deal with the version you helped create.
"It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending."
Your right. There will not be a fairytale ending. Its going to end with the Great fucking Reset, and that bitch wants tribute. Hundreds of millions, if not billions, will die because the $1 to $2 dollars a day they live on now ends up being Zimbabwed. The turmoil is going to be beyond horrific.
NoDebt said: "Just remember that only poor people are crazy. Rich people are eccentric." EXACTLY - and that says a lot about our current insanity.
Hey Bill - I miss: smoke filled rooms, real Women, and chrome.
Or ghost mega cities?
Well, right now the Gov is borrowing and handing it out to the FSA. If they are going to borrow so much, I'd prefer that they instead gave it to construction programs that empolyed people. It's food stamps and public housing instead of new roads, bridges, utilities, etc...
Look, if they're going to just give money away, at least make it productive.
It'll be 2 generations before anyone in the FSA willingly works
Nature will soon thin that herd. In another time they were called "fodder". FSA is their new nom de plume.
Social security, Medicare etc are funded by payroll taxes, not income taxes. "Welfare" payments - TANF - are less than 0.2% of the defense / security spending. Run the numbers before yacking.
I usually expect people at Zerohedge are well informed before they even find this site, that aquiring non-mainstream knowledge leads them here. I guess not in your case:
http://index.heritage.org/culture/total-welfare-spending/
and I suggest you educate yourself on poverty from a data-driven expert: http://www.heritage.org/about/staff/r/robert-rector
@madcows. I agree with your point regarding "food stamps and public housing" but the emphasis by you and Gross's "roads, bridges, utilities, etc....." only makes me think of the Japanese and that this is EXACTLY what they did and how's that going for them? I've said for several years that there's "No (easy) Way Out" of this debt-induced quagmire. None. The CB's keep trying to find that "easy" way, but they have failed. And, per Bill Gross, they are making it worse.
GM is suppying the "coffins"part admirably. And your coffin now has wheels and an engine. Well, sometimes it has a working engine and sometimes not. For those who own the GM "coffin on wheels" models, watch out for that tree!
Look as much as I hate gov spending, there are instances where it could be working, but it requires the return on capital to be very high and anyway the private sector in most cases can do it.,
Say you are in China in 1978, you have no transportation, no infrastructure, no nothing.
Say the gov identifies that a lot of production is not getting to market because there is no bridge over the river.
You build a bridge and the increase in ouput resulting from this bridge building is huge. In that particular instance the economy has grown faster than debt. So you might have reduced your Debt/GDP ratio by taking debt and building teh bridge. Now it could have been built by the private sector on a tender...no need for gov to do that.
Most developped countries do not have those type of oppportunities available, but a country like Maymar might actually reduce its debt to GDP by taking some debt if it creates monstruous GDP increases.... (only if the said infrastructure produces productivity leaps).
In the XIX century in the US, there was no need for the Gov to build trains.... those were built anyway and those produced producitivity leaps....
Be nice, he posts on here.
another of the ZH inteligencia puts down his best thoughts
Yup. I miss the days when every post was a deep comment or opposing view to the main post TD found. Now you will go 2 pages before you find something not a Nazi or Russian strawman.
Bill has been pretty consistent in his neutral call, and the unwind is what will kill us. by US I mean everyone. You think oil is a tailwind for a consumer, but that consumer's job is either based on upselling to resource magnates, or servicing their non-essential needs.
I will hedge jobs tomorrow will show that more entered the workforce for seasonal jobs, low quality retail jobs. Given how bad the Black Friday and Monday numbers were, I can see the Boxing day seasonal layoffs being adjusted down hard for extra reductions. Oil sector layoffs will likely happen in the January reports, starting with Dakota roughnecks. Industrials who cater to the service industry, such as pump & metal fitters will likely lead the manufacturing sector down, which is not being factored into the existing Dallas fed research or main-street models.
All that's left now is the "kick" for global benchmarks.
So are you saying I should reconsider moving to ND to bag that sweet $30/hr Pizza Hut delivery job? Damn it! I'm always late to the bubble party!
Billy found out what ZHers were shouting for years.
The filament finally ignites in the light-bulb head.
I guess he boned some folks.
Oops...wrong Bill Gross
He earned a 290 million bonus last year. He boned some folks.
But people listen to Bill.
Yes, Mr. Gross has done quite well pushing all those debt promises around.
I agree with much of what he says. Perhaps he will show us the way by putting his head under the blade of the guillotine first.
Bill, let us shorten this for you...
“If your outgo exceeds your income, then your upkeep will be your downfall.”
"F* you Bill"
Agrreed! This is the Guy that was the probably the single biggest buyer of Gov't debt, and helped enable the gov't to go on its borrowing binge. Then when cracks begins to show he ditches Pimco and leaves others to deal with the problems as they unfold. Bill is just another Uncle Warren, how speaks out of both sides of his mouth. How can anyone take this guy serious?
I like the modern rhyme warning about explosives: There once was a girl named Jill, who tried a dynomite stick for a thrill. They found her vagina in North Carolina and bits of her tits in Brazil.
Actually, his argument is one huge non sequitor. That underlined paragraph in the end initially laments the explosion in debt without a concommitant increase in production, while he then goes on to lament the lack of profligate spending (and borrowing) by .gov on infrastructure. No wonder PIMCO canned him - he's incoherent.
Mouthpiece for our overlords. Gross and his ilk will massage the push and pull while rug is ready for the pulling...then the lights will just go out. And Gross and his buddies will be no where to be found.
Fuck you Bill Gross.
URGENT! Nail Gun Squad, report to Newport Beach, California ASAP. Contract assignment information to follow. Code Name 144.
its all comming down to Germany........ If they turn the ECB loose to assume the EU member nations debt, the band will play a long encore before the end of the show....
Krugman wants GERMANY TO ( allow the ECB to ) PRINT MORE .....
It's always someone else's fault. Fuck you Krugman.
Krigman should know this has been done in history many times before with the same results.
As Japan will soon find out.
Princes of the Yen:Central Banks and the Transformation of the Economy
https://www.youtube.com/watch?feature=player_detailpage&v=p5Ac7ap_MAY
It's long, but very interesting... modelling a new society to suit the Financial Ponzi system.
Watch it later .. many similarities to QE today.
At ca. 1 hour onwards ... explains how the BoJ deliberately weakened Bank Balance Sheets to be later be able to nationalize them .. causing mass bankruptcies of all types of companies.
# MSM convinced the people that the old style Japanese economy was to blame .... "so we must get rid of it"
# people were convinced to move their money from Banks into the risky stock market .. US style
# to 'force' this, deposit insurance was withdrawn for private bank accounts
# ... + tax incentives for stock investments
# as US style shareholder capitalism spread , unemployment rose significantly
# income & wealth disparity rose, as did suicides and violent crimes
# in 2002 , the BOJ strengthened it's efforts to WORSEN bank balance sheets and force banks to foreclose on their borrowers
# Ministry of Financen had so far refused the BOJ's wish to INJECT TAX MONEY into banks
# .. effectively nationalizing them and using it's power to change management and call in loans from companies
# .. thus triggering bankruptcies of large firms.
etc. etc. etc.
Basically their Central Bank was kidnapped and used against them !
It also explains how the ECB fits in ... same model as for japan ... collapsing the European Economic System for CONTROL of all WW Economic Areas .... from Washington.
No surprise of course ... with ex-GS Draghi at the helm.
# Nation State becomes subservient to Wall Street & Central Banks.
# Purposely creating a recession , and deliberately prolonging it.
Would world citizens approve of this deception ? ..... No Way.
Fuck Krugman, and shame on Germany for not immediately releasing a serious "fuck off" response and banning him from entering Germany..
So your pissed now Slugman? wait till Germany gets pissed..
Which brings us to another like minded idiot.
..Pete Snark.. who by the way was as senile during his entire career as he is now..
And after 40 yrs of doing god knows how much damage to this country he would still be taking up chair space if he didnt lose the election last yr..
Only 5trillion in dept then.
"Do you have a doctorate"?
https://www.youtube.com/watch?
FWIW: Germany is F*cked anyway. It has terrible levels of socialism and has high debt loads. Germany is only slightly better off than the rest of Europe. Germany is also a puppet state of the US. For instance, US dictates Germany's foriegn policy (ie Ukraine).
"To think that only 25 years ago Angela Merkel was a divorced 35-year-old East German physicist specializing in quantum chemistry, who was not allowed to set foot in West Berlin and had never uttered a political opinion in public, was a striking affirmation of both the ability of Germany to recover and her own ability to succeed."
http://www.vanityfair.com/politics/2015/01/angela-merkel-profile
Buying frenzy in crApple today, wonder who that is?
DavidC
we debt-moneyed some folks.....
Let me help answer that question Bill. None of our "leaders" believe in the fairytale of more debt creating prosperity, sure their are the truly ignorant like Nancy Pelosi but most of them know exactly where this leads. They know the collapse will allow them to reintroduce serfdom conditions with them at the top buttressed by an enormous security and propaganda machine to keep the peasants in line forever. Its a big elite club and while you may be on the periphery of the club, I certainly cannot join. Once defacto martial law is in place to protect us you may be sure the end of the ponzi is near.
"but most of them know exactly where this leads"
A few might, but MOST couldn't pass a 4th grade math test.
"Never attribute to malice that which is adequately explained by stupidity "
Its a three card monti now...with the USA, Japan, and the EU...all printing as fast as they can.....and some point the rest of the world will just scream STOP
The EUR/JPY is an economic problem but the CNY/JPY military problem.
When debt is the only thing in their toolbox, what else are they supposed to use, Gold?
Think about it ...
Love it when sociopaths find their conscience the minute their tenure is up from behind the machine. Not.
Reminiscent of Greenspan on gold a couple weeks back.
.
http://www.sessions.senate.gov/public/index.cfm/news-releases?ID=450EC11...
This was your link, why did you take it away?
Unless this is a lie, it is a bit incredible.
I read about this yesterday. Obama takes another step deep into the incredible.
Obama forming an Army? U.S. Citizenship and Immigration Services (USCIS) could be a great place to form a secret agency of another kind for spying on US Citizens or Forming a Quick Reaction Force to Deploy in the USA.
The problem in the USA is there is so much money floating around it is impossible to discount any idea or covert activity we could think up about US Security Issues.
There won't be any questions. TPTB will re-write the answers for future generations.
Yep and then chocolate rations will be increased from 20 grams to 19 grams, all will rejoice, or else.
"There will be no rate normalization in my lifetime."
~The Bernank
But he never defined how long he would live.
Long enough for me to get a free sandwich.
Looking that way, isn't it?
We Duped a few people.
6 Years after 2002 Crash, 6 Years after 2008-2009 Crash, 6 Years of war against Fixed Income People.
Looks like they removed Toxic Assets, used QE to Boost Stocks & USA-Wall Street Reputation, Permanent ZIRP & LIRP has to be the Plan to get the Biggest, Best, and Insiders to Grow in the US Economy while keeping Credit Markets Liquid.
No Honest US Growth really. Honesty has gone the way of the Dodo Bird. GDP is a fiction. Integrity & Responsibility is no longer part of the Business Culture. Culture Warp.
Up is Down. Left is Right. Over is Under. Vertical is Horizontal.
Central banksters know that all it takes is kicking the can far enough, then no one is ever responsible for anything. Who gives a fuck about Bills scenario where future generations will be asking future policy makers 'how could you?'
'Hey, it wasn't me!' Is the reply.
records are made to be broken
promises are made to be broken
debts are made to be restructured (deeper you dig, deeper the cut)
How could they? It's simple, Bill. The same reason DSK raped a maid. High time preference.
Why Suffer at all ... Just elimante the Banker Cancer and the world will be cured !!
Otherwise just sit back and enjoy the suffering that they are prescribing to the world.. !
just that simple
The Byrds
pass the dubie, dude
Bill - Sherlock - Gross.
Bill is Gross
it's just a ride, bitchez.
https://www.youtube.com/watch?v=iMUiwTubYu0
Ask the Jews, they have all the answers.
Go fuck yourself.
If the jews have all the answers, then the question must have been "how do you fuck things up beyond recognition"
Wait until the junk bond market collapses soon. It's going to take the entire stock market with it. Bailouts galore !!
Sell and get out now while you're on top !!
It is much harder to pull out when you are on the bottom.
How could they Bill? Because of paid for shills like this dumb ass from Market Watch Bill, that's why...
http://www.marketwatch.com/story/why-the-uss-debt-is-no-longer-such-a-big-deal-2014-12-04?dist=lcountdown
What a fucking cunt Howard Gold and the rest of MW and CNBS writers are...
"How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly?"
Do we really not know the answer to this question? Do businesses "fail to regulate" debt? Sometimes, but then they dissappear. Perhaps we should give CEO's and boards of directors tanks and nuclear weapons. Then they too can "fail to regulate".
What incentive does government have to control debt? Anyone? Yea, crickets.
let's see
you could ask ronald reagan, except he's with Bozo in clown heaven.
so you'll have to ask fat grover, not the muppet.
He seems to be contradicting himself here. How could they borrow so much while stupidly trying to balance the budget instead of borrowing moar to build infrastructure? That doesn't make any sense...shithead!
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? (AGREE!)
How could they have thought that money printing and debt creation could create wealth instead of just more and more debt?(AGREE!)
How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? (WTF?, Did he take time to notice the off the chart squandering of trillions!?!?)
It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending. (AGREED!)
3 out of 4 not bad!
The second to last sentence (a question) in the Bill Gross quote sounds weird, almost backwards to what seemed was intended meaning.
Exactly! It's contradictory. He's an idiot...
When it all goes horribly wrong ..... you just change the rules.
10x GDP deivatives market - just declare it void - it was only a silly banker casino anyway.
Western Government debt - just declare it void - all back to zero, let's start again.
war and religion will be "how could they?!" subjects, both are completely absurd
On the one hand Bill seems to ba acknowledging that "solving a debt crisis with more debt" is insane and wonders "how could policy makers have allowed so much debt to be accumulated in the first place". On the other hand he seems to wonder why other people, other people who are looking at the same insanity are "attempting to balance budgets" and why didn't they "borrow cheaply and invest the proceeds in infrastructure and innovation." Can he not see the incongruity in his own views. He has clearly drunk too much of someone's cool-aid. What kind of idiot sees financial policymakers and governments commiting financial suicide and reacts to it by running out and borrowing a bunch so they can ensure they go down the toilet with everyone else when the inevitable crisis ensues.
The kind of idiot who makes a billion bucks from .gov's relentless attempt to drive down interest rates as it accumulated all that debt. This guy is no genius (which he has even admitted) - he just was in the right place at the right time.
You have a point. But, I think most people don't have as much faith in their ability to time markets such that they can borrow while the crisis brews and have it all paid off when the crash comes.
How do you get all so clean like that?
I agree with Bill Gross except I tend to see events before and since 2007-8 more like a childrens pantomime than a nursery rhythm.
The West is being governed by phychopathic people with minds of 12 year olds who have little understanding and no regard for the people they purport to represent.
Whatever - and as many folks on ZH already know and regularly comment - what is being done in our name is madness and will lead to a catastrophic finále. Timing is the only unknown.
Then the civil unrest begins.
long on rope and piano wire
This from the master debt salesman.
Same as Greenspam, Paulson, Geithner, etc. losers concerned about their reputations.
Rats abandoning the sinking ship.
On a long enough timeline, the whole thing is a slowly sinking ship.
None of us get out of this alive.
Not even them.
This is exactly he and his ilk are trying to do.
Get out alive....
They all have their planned exits. They will try and throw the governments fiscal irresponsibility under the bus, while downplaying their enabling role.
EVERY PERSON INVOLVED knew that no amount of fiscal austerity could undo that amount of debt. THEY ALL KNEW and their goal was to get the money, and blame and run.
I can see the Yuppies on Wall Street singing "Take the Money & Run...hoo hoo hoo"
When they die they have to go before Crom. He will laugh at them and throw them out of Valhalla. Then they will have to spend eternity in the void with the other foul things.
Bill took full advantage than comes back with his sorry ass remorse
what a joke
…public smoking, or discrimination against gays, or any other wrong turn in the process of being righted. – Bill Gross
Where on earth did these comparisons come from? And why the choice of these two issues for policy wrongs?
We smoked some gays?
Edit: cigarettes are sometimes referred to as faggots.
YUM
on a bagel w/ cream cheese
It's called living in California.
the analogy to monetary policy, and the great depression, is that policy makers failed to monetize enough, (how could they?) for want of another word, money vanished. (how could they?) as Alan Watts said, the Depression was a time when we could not agree that twelve inches equals one foot (how could we?) as for the lines of people outside the soup kitchens, people being driven from their homes, (we couldn't let that happen - to be fair the photographic document of suffering in the Depression was created by FDR in order to pass his New Deal program, he hired photographers to paint the picture, just as the economic crisis in 2008 was SOLD to the American people, in order to bring the NWO up to speed) when Clinton was asked about Monica and Bush was asked about Iraq, they both answered, I did it BECAUSE I COULD. (how could they?) and for want of a shoe the horse went lame, Clintons impeachment gave Bin Laden more time, which allowed him to do 9/11, which allowed Bush to create all sorts of problems (NSA) which we are only beginning to understand. (we shouldnt have let them - allow the economy to collapse because of a basic liquidity problem) progress is the eternal process of righting some wrong, and now the wrong we have to right has to do with the leadership, what power our leaders should have (in case you havent noticed Obama vs Boehner is the headline match.) while people form a collective idea of justice (see Ferguson and NYC) the leaders of this country should cringe, their jobs are not safe. the answer to the first part, what should the policy makers have done in the first great depression depends on your perspective.
I didn't down vote you here. I sort of like the way you laid that out. Except I believe that the Spy Agencies keep running things and playing both sides through proxies... no matter what is happening in the White House. But then I don't believe Sky Scrapers fall down like the Trade Center ones did.
Louis L'Amour traveled through the 20s and in one of his Nonfiction books he describes how people would share food with strangers and hobos... sometimes for work. It seems America was much different. So the homeless may have been fed in our country by kindness and cheap food... well and many people probably grew things in their gardens and there were many more farmers in the USA.
http://www.paulcraigroberts.org/2013/11/20/bin-ladens-obituary-notice/
https://en.wikipedia.org/wiki/Louis_L%27Amour
teethvillage88s
i think you may be right. my father had a job during the depression which meant my mother and brother had food...my parent's agreed that mother would bake pies every day and set them on the window ledge and the men (sorry pc it was men) riding the rails could stop and have a pie. mother said it was humbling to see the humility and gentle manner of those starving men, but the sight of the natives was the most shocking. perhaps because of having grown up hearing these stories, along with several posts from survivors of various devastating wars on ZH, stating that those in the rural hinterlands were often targets and that survival depended upon the kindness of those around you, i hope that when TSHTF we will also return to that part of ourselves. the part that no longer fears death, and will do anything to survive, but realize it's how we live out those seconds, perhaps years, helping, sharing, uplifting rather than fighting. it may be our moment to Imagine, as lennon suggested.
w2 was a breakdown in the global social fabric a result of the economic depression. to my thinking the social fabric is stronger than it was in the 30s. they can only continue their policies by excluding people from the government and the economy, (like the phony employment numbers or leaders elected when only half the voters turn out). when that happens the power comes back to the nonvoters, nonworkers, and disaffected. in the depression people had nothing to do, look around you now, everyone is doing something, its just very little of it counts as economic activity. i think secretly we're a lot stronger, and it draws power away from those at the top, who would like to declare a mandate to govern, when they barely won the electoral college, and lost the popular vote by 6million (Bush2) if he behaved according to the level of real support he has Obama would play golf every day. we're getting stronger, though i am sure of that
Welcome to the "New Normal."
Methinks Bill's trying to prick the bond bubble as a big FU to PIMCO.
I thought he was trying to do something like that when he left and took those accounts with him (start an avalanche, that is).
Right on. The same hubris that tells us we can't use medical marajuana, gays can't marry, women can't regulate their own bodies, thinks they know whats best best for everybody. The selfish control freaks want to control the economy and global economics.
Bill appears upset that, as the BOE's Haldane explained, they are "taking policy coordination to the next level" with the advent of Co-Co Bonds. Looks like Bill isn't going to the next level. Sour grapes...
It all makes perfect sense when you look at it from a what benefits the banks the most scenario. Nothing that the central banks do make any sense unless you ask yourself is it good for JPM, GS, BAC, DB, CS? If the answer is yes it is good for these criminal organizations this is why the FED does what it does. Puke.
lets focus on the real problem.. down with white cops!
Speaking of which, why don't we have more Black Cops.. oh that's right Blacks Won't Testify silly me..